In 2025 i converted basically all my funds to MXN since the dollar was rapidly dropping from 20 to 17 MXN, i do business in MX so its why i chose that over the euro or something else
Now the dollar is rising, i dont get it, the US was reported insolvent and all the other issues with China and Japan selling their bonds and and the huge list of other issues with the world not trusting the US ie; the dollar anymore
Is it continued to rise or will it crash?
Why is the dollar rising compared to MXN?
byu/xboxhaxorz ininvesting
Posted by xboxhaxorz
6 Comments
Isn’t the dollar rising against the JPY too?
The Petrodollar is a thing…. The higher the price of a barrel of oil the more dollars needed to purchase that barrel of oil which increases the demand for dollars.
The dollar is rising because high oil prices is good for USA as a net exporter of oil products. (Not great overall for the economy but worse for other countries than it is US). Also, because of expected inflation, interest rates likely are not dropping anytime soon, higher interest rates = higher currency value.
People still trust the dollar. US is an isolated, oil producing, safe haven.
People buy oil in dollars
Unless a country does not trade with US, the country has to debase its currency against the dollar otherwise the country will have a hard time exporting to the US.
The US prints money to increase its money supply by on average 7% a year.
If dollar is rising relative to MXN that means Mexico prints more money than the US.